tv First Business FOX November 6, 2009 5:00am-5:30am EST
entrepreneur that's made a very lucrative business from the adult entertainment industry. because the two biggest concerns this market continuing a year on the jobs and housing when it comes to housing finally the u.s. congress is beginning to act to extend the home owners or home buyers a tax credit take a look what had been a $8,000 credit for new home buyers will be extended to owners who have been in their homes by the ears of purchasing a new plan for credit up to $6,500 to have to buy by april 30th of next year. as we're talking about today the stock by years seem to be back full force with the dow above 10,000 mark although barely in now on friday morning were getting importing john reports the unemployment rate expected to hit 10 percent on
friday and then job losses for the month of october expected to come in and -175,000. still in the red we have not seen the stability of we've seen in the housing market when it comes to housing sales of tickets in part because the tax credit we have a scene the stability happen at all when it comes to the job market. a massive insider trading scandal has netted more than a dozen new arrests involving lawyers.. hedgefund managers and wallstreet traders who are accused of illegally making profits totalling more than 50 million dollars... sec is investigating 2 different schemes... there are 9 *new arrests tied to raj rajaratnam founder of hedge fund galleon group. him and 5 others were charged in october. and there's a second alleged scheme... where u-s authorities arrested 8 other people... "...used disposable cell phones in an attempt to conceal the scheme." according to details in the 2nd complaint those accused allegedly used
disposable cell phones in an attempt to conceal the scheme. s-e-c attorneys say the scandal involved insider trading on takeover announcementsinvolving hilton and earnings from polycom and google... those were among several other companies... "...destroyed the disposable cell phone by removing the sim card, biting it, and breaking the phone in half" after those announcments one of individuals destroyed the disposable cell phone by removing the sim card, biting it, and breaking the phone in half - according the s-e-c. and now the total number of individuals charged is up to 23. even more arrests are expected i think we're seeing the tip of the iceberg... i believe some of these insider trading practices gone on for years.. uncaught.. for a scheme like this to be successful is going to involve a lot of players carol gilden.. was a former attorney at the securities and exchange commission now a
partner at cohen, milstein, sellers and toll she says these new arrests are a sign of a much more aggressive securities and exchange commission. i think it sends a message that you're not too big to be caught.. sec and justice dept watching.. and they're going to catch you if you're engaging in practices that are illegal and unfair to other market participants the securities and exchange commission says their investigation is continuing. a new program from government agency fannie mae allows struggling homeowners facing foreclosure... to turn into renters... fannie mae is calling it the deed for lease program... homeowners about to go into foreclosures can remain in their homes... by signing a 1 year lease... and voluntarily transfer the deed back to fannie mae. it's another option for homeowners who don't qualify for loan modifications... or who are not able to keep up their payments even after modifying their loan.
to qualify for the program - borrowers must live in the home as a primary residence.. cannot have any other loans on the property.... and they would have to pay the market rate for rent. after the one year lease is over... it can be renewed month to month. fannie mae has hired an outside company to manage the properties. on friday, the government reports new numbers on the job market... and the unemployment rate is expected to hit exactly 10%... during this recession more than 7 million jobs have been lost... but help is on the way for those who continue to be jobless... on wednesday, the senate passed a bill extending benefits... and after the house takes another vote on the bill - it could be on the president's desk by next week. for 27 states where the unemployment rate is higher than 8.5% - it's a 20 week extention... all others would receive an extra 14 weeks of benefits. unemployed americans are now eligible to receive up to 99 weeks of benefits... the new extention is expected to cost 2.5 billion dollars... paid for by lengthening payroll taxes on
companies. jessica which m f global with us for a trader talk connected adar report it can mean the difference between hitting highs of 2009 and backing away from those highs in the stock market at least right? at least in the short term yes if we do get a very disappointing number you are going to see profit- taking in the equity market but it doesn't necessarily mean that this recovery trait that we've seen characterize the market since june is over. if we do see one more pork jobless number in the month of october yes it's going to make traders banks the pace for recovery but we have a solid economic growth in the places of the world and additionally we have stimulus at very high levels the fans can be rankled the bank of england of keeping rates low and those factors will help refill recover retreat as we digest
this jobless number. also watching the u.s. dollar hovering at yearly lows the potential that it could continue to have it orderly decline in how they think it's going to impact the market and economy? i think in the medium term the trend for a dollar still lower though we could see this risk aversion characterized the market on the back of a poured jobless number this number does not necessarily change the two biggest factors one u.s. interest rates are exceptionally low end to file with state and competent policy out of washington and the urge to continue to expand the fiscal deficit will have a negative implications for the u.s. dollar and those factors have not been changed. quickly talk about market interest rates hovering at 3 1/2% predicting your yield is gonna stay at these levels? again we can her back to who took 320 may be lote i was a range trading for a while until we have a break and more so see the yield curve
steepening which would mean the loan rates would go higher interest rates would stay where men are as we have a lot of supply coming up next week and again the deficit due to impact the back end of the curve. thank you so much jessica of m f global. can the upcoming holiday season help ring in the profits at the box office...we'll check in with our movie industry analyst. but first...how one entrpreuneur turnen skin into a booming business... that's next.
while fear and greed may rule the markets, sex and money are two powerful forces that come together in the entertainment field. sometimes, it's subtle. other times it's display is more blatantand profitable. alan markovitz has owned and run adult entertainment nightclubs for 30 years, writing about it in "topless prophet" welcome to the program. adult entertainment is high in a topless nightclub taught in
business been in the recession? we've been holding pretty good but we have felt the effects of the economy if i was a for the first time in almost three years that the recession has affected our business and has trickled down to was for the first time. you are in a neat position because you're based in detroit as we began a continue to operate their you rolled the heyday in the '70s and '80s of the u.s. auto industry in your filling in now. absolutely. the business was wonderful. we were humming along a course is very cyclical and automotive business so we did have four boats in the road but not like today. today we're filling the because we have a lot of problems in between with unemployment mic is the way all over the country. what marks the difference in this cycle in the service industry in other stocks that you experience? one of the
major problems is each customer i'm still getting the same amount of people coming but they're spending less. they've got less dollars to work with even entertain adults with people seem to find no better job and that the market is but they're spending less of its been very you been developing close as well in this kind of an empire in 1 x about the resources to develop close what's been your response to the lower ticket charge have been cutting prices? we have been doing some of our own estimates package a week and one little bit more unhappy hour which we never did before i've always been against this neiman-marcus it just doesn't report. some guys try to do that and not let the customers coming they're gonna spend money that we need to spend to keep these places growing. we have been trying to cut a little bit here and there
is bars specials along the way. but i imagine you're developing clubs in the penthouse name you actually lessen the day from the publisher what is your capital coming from are you able to get credit in this environment? and we've never been able to get i think a lot of it is because we have a stigma and our business. the of gold industry. it's tough even rest of us to give loans but especially in our business i've been having to use my only real these and that creates a crunch sometimes because you spend a lot of resources then you're moving away it up and down like a roller coaster if i could get bank financing it would make it a lot easier. one of your competitors in one market is actually a publicly traded company its own clients room of pressure when he thought about going public? i really haven't i don't believe this business is a cookie cutter business and to think to be a public company you have to red bricks they start off with good intentions and his work for a while but i think there seen the problems with this business been not a cookie cutter business and a passel issues along the way his so for me i like to be a little more in
charge i my own boss me. you were called a sleaze merchants used a shot twice you have been the subject of a murder contract from a business partner when the maker of the social cost of the industry bid to operate and? thanks for bringing the all of these wonderful memories will you write about them in the books. i fortunately for me i had these things happen to me most of the time they haven't had these problems. when i was the first time i get hurt i had a young lady who was dancing for me i was micromanaging every aspect of the business i threw her out of the building she came back to new she shot me. we found later that she was on drugs and had baggage out there. it does bring questions of social impact and the best adult entertainment industry is there a social call to your
estimation? i think they're real somewhat but to go find a much different if you go to any other industry find similar problems in my business as you would and others. i think is magnified in my business because of the nature. interesting topics profit is the name of the book. thank you very much. still ahead from teenage vampires to ninjas...what's creating the buzz at the movies this holiday season...we'll find out next.
movie business traditionally pulls in more than one billion dollars at the box office between now and the end of the year.and this year continues to be on a record pace for profits. david sikich is back with us. barely past halloween - we have a christmas movie opening already? just like shopping. this season has changed very quickly november is the start of a serious the holiday season has broken into two parts november releases that peak and thanksgiving in december releases that lead to christmas and new year's. this year it just so happened only christmas movie is opening this week the first week in november disney bid remake of the christmas carol directed by bob and starring jim carrey is one of those combinations of animation and live action just like bill wolf and polar express thought 3d capture technology november is the best month to open a christmas movie because of the
lead time. is not unprecedented the so-called movies also open here. the fact is this year it takes advantage of the 3d screens in their 2000 3d screens to disney has six weeks to control the screens because there's only to 3d movies left. there's been who 3d has been a big money generation in his opening very early. this year has been all about and marketing techniques so going back to disney what is disney doing to promote a christmas carol? hollywood is marketing driven in the studios really i tip my hat to them because they're continually thinking of new ways to sell their movies. is he just came off a six month whistle stop trying to work out the country with a six car passenger train could stop than 40 cities big and small a start and loss angeles at memorial day and ended at grand central
station in new york. they had digital galleries how the movie was made interactive games it was all free for the families in an harkens back to the early days of showmanship and the circus came to town. is another creative way the director said well mass merchandising the industry is changing you can get a broad audience would massive merchandising you have to think of different ways to reach people. will save the strategy brings people into the theater and talk about was opening new this weekend we have actually for movies as opposed to one last week. it's getting more competitive and looking at the titles in the all have a strange connection to paranoia activity and that's pretty hot with the movie of the same tidal bore brothers has the box which is the twilight zone store read
strange box is left the door but cameron diaz and are husband all we have to do is push a button to get $1 million but someone dies if that happens universal has the fourth kind about a lynn of the actions in the where this movie of the year of the week and you're probably is the man who is there a ghost. george clooney and jeff bridges kevin spacey care about a military unit that investigates paranoia activity in telepathy. in december of sell because no one knows what is about. a christmas carol because the goals visit proved in the when jim carrey plays seven roles of course stages of screwed plus the three goals in one of those can use a big kid because carry has been slow at the box office. let's talk about the rest of the month what else is in the pipeline? and as head james bond like last november but the next three weeks all have blockbusters on paper christmas carol should be number one that should do really well. next week is like a summer type
extravaganza in of the roll extravaganza with 2012 done coalsack whether world in will anybody be ready to watch the world in which a box of popcorn in their hand in the sequel the twilight of empire in the new moon which did 03 hundred million last year this is a guaranteed winner for some in their attainment then we get into things giving any get us a little light with ninth assassin from warner in middle age comedy from this the old of robin williams and john travolta so that in in the mud can be the total so i don't know what's up to scary movies by i am not a fan of those so i hope we get happiness. this week and could use a romantic comedy. they're not all going to do business after everything after recession we need some happy movies. thank you so much movie industry analyst. coming up next week in the talk about chart talk. with the dow back above the 10,000 marks will take a close
the dow is now back above the psychological mark of 10,000 barely is at 10,006 in the trend line starting from march if the upturn is still intact. does that we've been talking about whether or not the selling pressure that we stopped materializing 8 in october was difficult because we did see more ferocity more it momentum about him it but that doesn't mean that we broke down to levels in fact believe it or not it was only three weeks ago that we krakatau's a for the dow. i guess to nest text will be to see in the
coming days if the dow can get above the 10,100 level for the dow has not been able to get above that level would be times in october pulled that's going to be the major test 10,100 most definitely best one to watch. but after six and a half years i am leaving this position at first business and we took over the show back in 2003 the postdoc bull market was barely beginning that was back three months after the u.s. invasion of iraq in marked the end of the. c o m and a bear market also marked the low oil prices $20.30 dollars a barrel my short time here with first business we've seen new heights in stock prices back in 2007 new heights of corporate corruption which and run and tyco and of course new frontier certainly of real economic sphere just when you're of gold this year i've learned something new every day and i certainly hope you have and i hope you continue to to end to first business every day on this channel and tom i can say i have
learned something from you every day i've worked on store received with the past three years thank you very much. he's been a good friend and a good colleague and i know the show is a good chance where everyone and first business will see you back online back her next time thank you for watching everybody.